Matsumoto Inc. (7901) AI Stock Analysis

• Market Cap: ¥990.72M
• Dividend Yield: N/A
• Average Volume (3M): 11.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -2.67%
• EPS Growth: -390.73%
• Country: JP
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -120.31
• Shares Outstanding: 1,143,900
• 10 Day Avg. Volume: 3,260
• 30 Day Avg. Volume: 11,803
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥950.00
• Price Target Upside: 10.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥950.00 ▲(10.21% Upside)

Matsumoto Inc. is facing severe financial difficulties, with declining revenues, negative profit margins, and cash flow issues. The technical indicators suggest a bearish trend, and the valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Matsumoto Inc. Business Overview & Revenue Model

Company Description

Matsumoto Inc. (7901) is a leading player in the Japanese retail and consumer goods sector, specializing in a diverse range of products including cosmetics, health and beauty items, and personal care products. The company operates a chain of retail stores, offering both branded and private-label products, and has established a strong presence in the e-commerce market. With a focus on quality and customer satisfaction, Matsumoto Inc. aims to meet the evolving needs of consumers in Japan and beyond.

How the Company Makes Money

Matsumoto Inc. generates revenue primarily through the sale of its wide array of cosmetic and personal care products in both physical retail locations and online platforms. The company's revenue model is supported by multiple streams, including direct sales from its retail stores, online sales through its e-commerce site, and partnerships with other retailers for distribution. Additionally, Matsumoto Inc. benefits from private-label products, which typically offer higher profit margins compared to branded items. Seasonal promotions, loyalty programs, and strategic marketing campaigns also play a significant role in driving sales and enhancing customer retention. The company collaborates with various suppliers and manufacturers to ensure a steady supply of products, which further solidifies its market position and revenue generation capabilities.

Matsumoto Inc. Financial Statement Overview

Summary

Matsumoto Inc. is facing significant financial challenges, with declining revenues, negative profit margins, and increasing leverage. The company is also experiencing negative operating and free cash flows, indicating potential liquidity concerns.

Income Statement

Matsumoto Inc. has experienced declining revenue over the past few years, with a significant drop in revenue growth rate in the latest period. The company is struggling with negative net profit margins and EBIT margins, indicating operational inefficiencies and challenges in maintaining profitability. The gross profit margin has also decreased, reflecting potential issues in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio has increased over time, suggesting a growing reliance on debt financing, although it remains moderate. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the overall financial health is weakened by the negative ROE.

Cash Flow

Matsumoto Inc. has negative operating cash flow, which is concerning as it indicates the company is not generating sufficient cash from its core operations. The free cash flow is also negative, and the free cash flow growth rate is highly volatile, reflecting inconsistent cash generation. The ratios of operating and free cash flow to net income are erratic, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.19B	2.17B	2.21B	2.24B	2.35B	2.27B
Gross Profit	279.31M	239.12M	327.33M	447.16M	248.72M	111.42M
EBITDA	-144.20M	-520.94M	-28.66M	60.31M	-1.06B	-91.00M
Net Income	-224.23M	-653.36M	-86.61M	74.43M	-1.29B	-389.11M
Balance Sheet
Total Assets	2.85B	2.09B	2.84B	2.83B	2.65B	3.84B
Cash, Cash Equivalents and Short-Term Investments	184.81M	219.84M	557.42M	982.96M	948.10M	758.24M
Total Debt	960.89M	348.32M	487.16M	400.00M	100.00M	0.00
Total Liabilities	1.95B	1.26B	1.38B	1.31B	1.21B	1.08B
Stockholders Equity	901.64M	825.17M	1.46B	1.51B	1.44B	2.77B
Cash Flow
Free Cash Flow	0.00	-190.21M	-203.03M	-298.00M	123.58M	-500.08M
Operating Cash Flow	0.00	-136.42M	-68.85M	-73.98M	136.62M	-74.89M
Investing Cash Flow	0.00	-56.26M	-77.26M	-184.13M	-3.03M	-424.22M
Financing Cash Flow	0.00	-144.91M	-279.43M	292.98M	56.27M	-43.83M

Matsumoto Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 862.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7901, the sentiment is Negative. The current price of 862 is below the 20-day moving average (MA) of 1035.40, below the 50-day MA of 1119.18, and below the 200-day MA of 899.57, indicating a neutral trend. The MACD of -54.53 indicates Positive momentum. The RSI at 32.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7901.

Matsumoto Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3945	81 Outperform	¥4.31B	4.26	20.70%	3.19%	1.64%	17.47%
3892	70 Outperform	¥7.88B	9.16	6.17%	2.55%	0.09%	-31.12%
3955	68 Neutral	¥9.64B	8.81	4.65%	3.12%	6.70%	12.10%
3895	66 Neutral	¥3.41B	6.46	9.26%	4.17%	-0.52%	-30.18%
9929	59 Neutral	¥4.32B	43.28	1.18%	2.70%	-0.62%	-28.02%
7901	41 Neutral	¥990.72M	―	―	―	-2.67%	-390.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%